Strategic Management Midterm
According to value-chain analysis, which of the following would be considered part of the general administration in a firm? A. information systems B. technology development C. human resource management D. procurement
A
Accounting is a sort of transformation process that converts daily records of individual transactions into monthly financial reports. The __________ are the inputs, accounting is the operation that adds value, and ___________ are the outputs. A. transaction records; financial statements B. financial statements; transaction records C. employee records; transaction records D. health records; transaction statements
A
Amazon Prime is credited for helping to increase the Amazon stock price by nearly 300 percent from 2008 to 2010. This competitive advantage is known as A. causal ambiguity. B. product rarity. C. service validity. D. substitutability.
A
An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that A. interests of the stockholders are not the only interests that matter. B. stakeholders are second in importance to the stockholders. C. stakeholders and managers inevitably work at cross-purposes. D. all stakeholders receive financial rewards.
A
Corporate level strategy focuses on what businesses to compete in and A. how business can be managed to achieve synergy. B. how business can be managed to reduce synergy. C. how the firm can work as a stand-alone entity. D. how the firm can create more value by operating alone
A
Demands for greater corporate responsibility have accelerated today. They focus on issues such as A. labor standards and environmental sustainability. B. taxation. C. product benefits. D. service benefits.
A
Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility, which is the A. expectation that business will strive to improve the overall welfare of society. B. idea that organizations are solely responsible to local citizens. C. fact that court costs could impact the financial bottom line. D. idea that businesses are responsible for maintaining a healthy social climate for their employees
A
Gathering competitive intelligence A. is good business practice. B. is illegal. C. is considered unethical. D. minimizes the need to obtain information in the public domain.
A
In 2014, Audi introduced the Q3 SUV at a base price of only $32,500. And BMW, with its 1-series, is another well-known example. Such cars, priced in the low $30,000s, compete more directly with products from broad-line manufacturers like Ford, General Motors, and Toyota. This suggests that members of a strategic group can overcome _____ barriers and migrate to other groups that they find attractive if they are willing to commit time and resources. A. mobility B. competitive C. pricing D. cost
A
It is important to question the reliability of forecasts because A. if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity. B. uncertainty is black and white and therefore the gray areas are unimportant. C. underestimating uncertainty can lead to good competitive strategies. D. the growth new industries, such as that of telecommunications, cannot be predicted.
A
Managers should do more than focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that A. stakeholders are dependent on each other for their success. B. stakeholders look out for their individual interests. C. one can only gain at the expense of someone else. D. all stakeholders want to maximize shareholder returns.
A
Melvin Alexander, executive director of Principled Solutions Enterprise, a management consulting firm specializing in health care, suggests that environmental changes oblige firms to make strategic changes in order to survive. Which of the following is one of the strategic changes he foresees will occur in the next three to five years? A. changes in the behavior of the health care consumers B. reduction in the number of available medical doctors C. increases in the number of locations of health care facilities D. decreases in information technology investment
A
Methods by which successful executives show their interest in learning what others are thinking include A. holding town hall meetings and consulting employees on what they would do if in charge. B. holding town hall meetings and consulting bankers on what they would do if in charge. C. holding retreats and consulting rivals on what they would do if in charge. D. consulting rivals and consulting investment bankers.
A
Ratios that reflect whether or not a firm is efficiently using its resources are known as A. turnover ratios. B. leverage ratios. C. liquidity ratios. D. profitability ratios
A
SWOT analysis is a framework for analyzing the internal and external environment of a company. It consists of strengths, weaknesses, opportunities, and threats. According to a SWOT analysis, which of the following is not an aspect that the strategy of the firm must follow? A. build on its weaknesses B. remedy the weaknesses or work around them C. take advantage of the opportunities presented by the environment D. protect the firm from the threats
A
Some benefits of sustainability projects include A. reducing risks. B. lagging behind regulations. C. displeasing communities. D. ignoring employee morale.
A
Strategies should be formulated that enhance foremost the ____________ capacity of a firm. A. innovative B. learning C. implementation D. business-level
A
Strategy formulation at the business level addresses best how to compete in a given business: A. to attain competitive advantage B. to reduce costs C. to decrease buyer power D. to thwart entry of new rival
A
The culture of a firm also may be a resource that provides competitive advantage. Which of these companies might be a good example of this intangible resource? A. Google B. Kmart C. Costco D. Walmart
A
The customer perspective of the balanced scorecard answers which of the following questions? A. How do customers see us? B. What must we excel at? C. How do we look to shareholders? D. Can we continue to improve and create value?
A
The four key attributes of strategic management include the idea that strategy must A. be directed toward overall organizational goals and objectives. B. be focused only on long-term objectives. C. be focused on only one specific area of an organization. D. focus only on competitor strengths.
A
The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole. A. trends B. positions C. experience D. wealth
A
The strategic groups concept is valuable for identifying groups with _______ competitive positions. A. marginal B. exceptional C. healthy D. poor
A
The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role? A. operationalize the mission statement B. modify the mission statement C. are a shorter version of the mission statement D. are only clarified by the board of directors
A
Transformational change involves A. extensive communication. B. little training. C. no employee development. D. few incentives.
A
We want to be the top-ranked supplier to our customers. (PPG) This is an example of a A. nonfinancial strategic objective. B. financial strategic objective. C. vision statement. D. mission statement.
A
When the management frame of reference gets out of touch with the realities of the actual business situation, what can happen to the firm? A. The company business strategy no longer works. B. Management gets across-the-board raises. C. Management perceptual acuity improves. D. It becomes easier to maintain competitive advantage.
A
Which of the following is a limitation of SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis? A. Organizational strengths may not lead to competitive advantage. B. The SWOT focus on internal environment is too broad and integrative. C. SWOT gives a multi-shot view of a moving target. D. SWOT overemphasizes a multiple dimensions of strategy.
A
Which of the following is not a tangible resource? A. technical and scientific skills B. trade secrets, patents, copyrights C. state-of-the art machinery D. company borrowing capacity
A
Which of these categories of financial ratios is used to measure the ability of a firm to meet its shortterm financial obligations? A. liquidity ratios B. profitability ratios C. activity ratios D. leverage ratios
A
Why must successful managers recognize opportunities and threats in their company external environment? A. If they miscalculate the market, opportunities will be lost. B. If they misread the market, they are likely to become rich. C. If they identify all of the environmental threats, they are guaranteed to acquire large market share. D. If they identify all of the environmental opportunities, they are guaranteed to acquire large market share.
A
A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics: A. psychographic uniqueness, path dependency, causal ambiguity, and substitutability. B. physical uniqueness, path dependency, causal ambiguity, and social complexity. C. rarity, path dependency, causal ambiguity, and social substitutability. D. geographic uniqueness, cause dependency, social ambiguity, and path complexity.
B
A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of _______ financial leverage. A. short-term B. long-term C. relative D. comparable
B
A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain A. no competitive advantage. B. a temporary competitive advantage. C. competitive parity. D. a sustainable competitive advantage.
B
A travel agent adds value by creating an itinerary that includes transportation, accommodations, and activities that are customized to your budget and travel dates. In terms of the value chain analysis, this is an example of a ____________ organization. A. retail B. service C. manufacturing D. travel
B
A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon A. path dependency. B. social complexity. C. physical uniqueness. D. tangible resources.
B
According to a CEO survey by Accenture, __________________ are not mutually exclusive corporate goals. A. quality and profitability B. sustainability and profitability C. ROI and quality D. availability and ROI
B
Boards of directors use outsiders to critique their strategy. This is necessary to improve mostly A. financial returns. B. organizational hierarchy. C. perceptual acuity. D. employee relations.
B
Buyer power will be greater when A. the products purchased are highly differentiated. B. it is concentrated or when a buyer group purchases large volumes relative to seller sales. C. the industry product is very important to the quality of the buyer end products or services. D. there are high switching costs.
B
Community stakeholders are concerned primarily with A. product warranties. B. corporate citizenship behavior. C. capital appreciation. D. repayment of principal.
B
Corporate retreats do not A. permit companies to discuss larger marketplace trends. B. guarantee positive consumer response to new products. C. give companies an opportunity to look beyond their own industries. D. oblige management to automatically change strategy.
B
Effective organizational design means that firms must have ________ that are consistent with their strategy. A. designs and plans B. organizational structures and designs C. adopters and designs D. adopters and plans
B
Effective vision statements include A. all strategic directions of the organization. B. a brief statement of the company's direction. C. strategic posturing and future objectives. D. financial objectives and projected figures
B
Emerging sociocultural changes in the environment include A. changes in the ethnic composition. B. the increasing educational attainment of women in the past decade. C. progressively less disposable income by consumers. D. changes in the geographic distribution of the population.
B
Employee stakeholders are concerned with A. taxes, warranties, and regulations. B. wages, benefits, and job security. C. good citizenship behavior. D. dividends
B
End users are not A. the final consumers in a distribution channel. B. the first customers in a distribution channel. C. likely to have greater bargaining power because of the Internet. D. usually the C in B2C.
B
Executive leaders champion and guide ideas by A. reinforcing ideas that did not work. B. creating a learning infrastructure. C. validating their formal authority. D. increasing their personal power.
B
Focusing too narrowly on current customers, technologies, and competitors can lead to a failure to notice important changes on the periphery of their environment that may trigger the need to redefine industry boundaries and identify a whole new set of competitive relationships. This is a result of relying A. on traditional definitions of all industries and competitive environments. B. on traditional definitions of the relevant industry and competitive environment. C. solely on intuition. D. on a superficial evaluation of the relevant industry and competitive environment.
B
Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a A. nonfinancial strategic objective. B. financial strategic objective. C. vision statement. D. mission statement.
B
In the general environment, many relationships exist among the various elements. General environmental trends can have positive and negative impacts on various industries. For example, the aging population might have a ______ impact on the health care industry and a ______ impact on the baby product industry. These are called _____________ impacts. A. negative; positive; demographic B. positive; negative; technological C. negative; positive; sociocultural D. positive; negative; demographic
B
In the value net analysis, complementors are A. firms that produce substitute products. B. firms that produce products that have a positive impact on company product value. C. customers who compliment the company for their good products and services. D. firms that supply critical inputs to a company.
B
Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. A. positive; negligible B. negative; negligible C. negative; positive D. positive; negative
B
Learning organizations permit the entire organization to benefit from ____________ talents. A. internal and external B. individual and collective C. internal and collective D. external and individual
B
Lowes has found that women prefer to do larger home-improvement projects with a man, whether a boyfriend, husband, or neighbor. As a result, in addition to its recipe card classes (that explain various projects that take only one weekend), Lowes offers co-ed store clinics for projects like sink installation. This is an example of which segment of the general environment? A. economic B. sociocultural C. political and legal D. demographic
B
Nintendo built a security chip into its game console hardware and then licensed the right to develop games to outside firms. These firms paid a royalty to Nintendo for each copy of the game sold. This is an example of Nintendo using _________ products. A. substitute B. complement C. unrelated D. differentiated
B
PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass, and fiber glass suffered serious failures in 1986 and 1987 when it attempted to diversify its offers. It used a technique to help it identify possible future strategies. What was it? A. crowdsourcing B. scenario analysis C. competitive intelligence D. monitoring
B
Peter Senge, of MIT, recognized three types of leaders. These individuals champion and guide ideas, create a learning infrastructure, and establish a domain for taking action. A. local line leaders B. executive leaders C. internal networkers D. shop floor leaders
B
Procter and Gamble has perfected a technique for compacting cleaning powder into a liquid concentration. Consumers, retailers, shipping and wholesalers, and environmentalists all have benefited from the resulting change in consumer shopping habits and the revolution in industry supply-chain economics. According to the text, this is an example of A. zero-sum relationship among stakeholders. B. stakeholder symbiosis. C. rewarding stakeholders. D. emphasizing financial returns.
B
SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ______________ of the firm. A. internal opportunities and threats B. internal strengths and weaknesses C. internal strengths and opportunities D. internal weaknesses and opportunities
B
Salemi Industries launched Cell Zone unsuccessfully in 2005 because it did not understand the market demand for its new product. This is an example of A. vision statement evaluation. B. environmental scanning. C. assessing internal strengths. D. mission statement evaluation.`
B
Scanning the general environment would identify information on A. substitute goods. B. the aging population and ethnic shifts. C. customer and firm bargaining power. D. competitive rivalry.
B
Stakeholders are A. a new way to describe stockholders. B. individuals, groups, and organizations who have a stake in the success of the organization. C. creditors who hold a lien on the assets of the organization. D. attorneys and their clients who sue the organization
B
Steve Jobs, former chairman of Apple, demonstrated that ___________ also are important in forecasting. A. character and ability B. intuition and judgment C. training and experience D. imagination and training
B
Strategic groups consist of a group of A. top executives that makes strategies for a company. B. firms within an industry that follows similar strategies. C. executives drawn from different companies within an industry that makes decisions on industry standards. D. firms within an industry that decides to collude rather than compete with each other so that they can increase their profits
B
Strategic groups consist of firms that are more _____ to each other than firms that are not. A. familiar B. similar C. friendly D. useful
B
Strategists who rely on traditional definitions of their industry and competitive environment often focus their sights too ___________ on current customers, technologies, and competitors. A. broadly B. narrowly C. aggressively D. widely
B
Sustainability programs often find their success beyond company boundaries, thus ______ systems and _____ metrics cannot capture all of the relevant numbers. A. external; bio B. internal; process C. external; external D. internal; internal
B
The ability to hire, motivate, and retain human capital is an example of ________ capabilities in the resource-based view of the firm. A. tangible B. organizational C. management D. design
B
The aging of the population, changes in ethnic composition, and effects of the baby boom are __________ changes. A. macroeconomic B. demographic C. global D. sociocultural
B
The bargaining power of the buyer is greater than that of the supplier when A. volume of purchase is low. B. the buyer profit margin is low. C. cost savings from the supplier's product are minimal. D. threat of backward integration by buyers is low.
B
The internal business perspective of the balanced scorecard answers which of the following questions? A. How do customers see us? B. What must we excel at? C. How do we look to shareholders? D. Can we continue to improve and create value?
B
Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve A. stakeholder management. B. perceptual acuity. C. internal scanning. D. financial returns.
B
WellPoint Health Network states: WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future. This is an example of a A. strategic objective. B. vision statement. C. vague statement of direction. D. line manager's individual goal.
B
Which of the following is not an example of a financial strategic objective? A . Increase sales growth 6 percent to 8 percent and accelerate core net earnings growth from 13 percent to15 percent per share in each of the next 5 years. (Procter & Gamble) B. Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales. (3M) C. Generate Internet-related revenue of $1.5 billion. (AutoNation) D. Cut corporate overhead costs by $30 million per year. (Fortune Brands
B
Which of the following is not an example of organizational capabilities? A. outstanding customer service B. reputation with customers for quality and reliability C. innovativeness of products and services D. ability to hire, motivate, and retain human capital
B
Which of the following statements about strategic groups is false? A. Two assumptions are made: (1) no two firms are totally different, (2) no two firms are exactly the same. B. Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups. C. Strategic groups help chart the future directions of firm strategies. D. Strategic groups ar
B
Which of the following would be considered part of the general environment of a firm? A. decreased entry barriers B. higher unemployment rates C. increased bargaining power of the firm's suppliers D. increased competitive intensity
B
Which of the following would not lead a manager to believe that an ethical concern exists? A. Have I done anything that coerced somebody to share this information? B. Is the contemplated technique for gathering information relevant? C. Have I done something to circumvent a system intended to secure or protect information? D. Have I misled anybody in order to gain access?
B
While working to prioritize and fulfill their responsibilities, members of the board of directors of an organization should A. represent their own interests. B. represent the interests of the shareholders. C. direct all actions of the CEO. D. emphasize the importance of short-term goals.
B
Whirlpool's transformation under corporate vice president Nancy Snyder included financial investments in A. shareholder dividends. B. capital spending. C. community development. D. paying down borrowed debt.
B
_____________ are typically embedded in unique routines and practices that have evolved and accumulated over time such as effective work teams. A. Tangible resources B. Intangible resources C. Reputational resources D. Organizational capabilities
B
_____________ tracks the evolution of environmental trends, sequences of events, or streams of activities. A. Environmental scanning B. Environmental monitoring C. Environmental surveying D. Competitive intelligence
B
Apple Inc. reported revenues of 171 billion USD and net income of 37 billion USD in 2012. These figures represent a stunning annual growth in revenue and net income of 57 percent and 43 percent, respectively, for the 2011 to 2013 time period. This information indicates the importance of using __________ to evaluate company financial performance. A. financial ratios B. industry norms C. historical comparisons D. competitor analysis
C
Apple combines and packages proven technology in new and innovative ways. This is an example of its use of A. tangible resources. B. intangible resources. C. organizational capabilities. D. strong primary activities.
C
By emphasizing the importance of identifying opportunities and threats, the SWOT framework makes firms act ________ rather than ___________. A. quickly; slowly B. immediately; eventually C. proactively; reactively D. intelligently; uninformed
C
Comparing your firm with all other firms in your industry assesses _________ performance. A. excessive B. consistent C. relative D. non-comparable
C
Competition among organizations is played out over time. As circumstances, capabilities, and strategies change, _________ techniques do not reveal the dynamics of the competitive environment. A. transactional analysis B. variable analysis C. static analysis D. continuous
C
Complements are products or services that have a potential impact on the _________ of the products or services of that company. A. cost B. availability C. value D. substitutability
C
Effective leaders set a direction and develop an organization so that it is committed to excellence and ___________ behavior. A. performant B. strategic C. ethical D. positive
C
Effectiveness is often defined as A. doing things right. B. stakeholder satisfaction. C. doing the right thing. D. productivity enhancement.
C
Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm) if A. suppliers are loyal to the firm. B. their expertise is firm-specific. C. the cost to the firm of replacing them is high. D. the firm's resources are path dependent.
C
Firms that were successful in the past can fail today because A. they keep pace with changes in the nature of competition. B. their financial situation is resilient. C. the company strategy is outdated. D. management monitors the relevant environmental factors regularly.
C
For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes? A. rare B. valuable C. easy for competitors to substitute D. difficult for competitors to imitat
C
For an engineering services firm, ________________ provides inputs, the transformation process is the engineering itself, and innovative designs and practical solutions are the outputs. A. experimentation B. customer support C. research and development D. human resource managemen
C
From the innovation and learning perspective, survival is dependent upon managers making _________ changes to existing products and services as well as introduce entirely new products with expanded capabilities. A. few B. no C. frequent D. rare
C
General administration is sometimes viewed as only _______ but can be a powerful source of competitive advantage. A. income B. value C. overhead D. unimportan
C
In an interview with Lise Saari, former director of global workforce research at IBM, she notes that HR must be a true partner of the business, with a deep and up-to-date understanding of business realities and objectives, and must ensure HR initiatives fully support them at all points of the value chain. This is an example of A. relationships among activities within the firm and with other stakeholders. B. relationships between firms. C. interrelationships among activities within the firm. D. interrelationships among firms.
C
In contrast to __________ interactions, which allow the firm to gain insights on the needs of a particular customer, ___________ offers the opportunity to leverage the wisdom of a larger crowd. A. consumer; sourcing B. prosumer; outsourcing C. prosumer; crowdsourcing D. marketing; crowdsourcin
C
In general, the threat of substitutes is heightened because the Internet A. lowers switching costs. B. lowers barriers to entry. C. introduces new ways to accomplish the same task. D. increases output per unit of cost.
C
In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives A. put financial objectives above human considerations. B. align departments toward departmental goals. C. help resolve conflicts through their common purpose. D. cause debate and increase conflict.
C
In order to be considered strategic resources that contribute competitive advantage, they must have several characteristics. Which of the following is not one of these? A. rare B. valuable C. inexpensive to imitate D. costly to substitute
C
In terms of value chain analysis, a telephone operating company would find that negotiating and maintaining ongoing relations with regulatory bodies are important activities for achieving A. returns on investment. B. customer awareness. C. competitive advantage. D. better employees.
C
In the Five-Forces model, conditions under which a supplier group can be powerful include all of the following except A. lack of importance of the buyer to the supplier group. B. high differentiation by the supplier. C. readily available substitute products. D. dominance by a few suppliers.
C
In the general environment, which of the following is not a demographic trend? A. aging population B. greater disparities in income levels C. more women in the workforce D. changes in ethnic composition
C
Intangible resources are typically embedded in ________ routines and practices that have evolved and accumulated over time. A. rare B. standard C. unique D. obvious
C
Internal networks generate their power through the _____________ of their ideas. A. validity and correctness B. conviction and clarity C. validation and recognition D. approval and awareness
C
Larger numbers of women entering the work force since the early 1970s is an example of A. demographic changes. B. political and legal environmental changes. C. sociocultural changes. D. technological developments
C
Leadership is a necessary (but not sufficient) condition for organizational success. Leaders should emerge at which level(s) of an organization? A. only at the top B. in the middle C. throughout the organization D. only during times of change
C
Local line leaders have __________ responsibility. A. local B. executive C. profit-and-loss D. no
C
Making comparisons between a firm and its most direct rivals is useful because firms within the same strategic industry group have _______ strategies. A. different B. the same C. similar D. relative
C
Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if A. each functional area focuses on achieving their own goals. B. goals are defined at the bottom and implemented at the top. C. functional areas work together to attain overall goals. D. management and employees have separate goals
C
New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a A. threat of entry. B. backward integration. C. threat of substitute products. D. forward integration.
C
Northrup Grumman saved $2 million in energy costs at a single facility by installing reflective roofs and fluorescent lighting, replacing old equipment, and making minor temperature and humidity-level adjustments. This is an example of the benefit of A. increasing revenue efforts. B. marketing programs. C. sustainability efforts. D. process management
C
Peter Senge, of MIT, recognized three types of leaders. __________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas. A. Local line leaders B. Executive leaders C. Internal networkers D. Shop floor leaders
C
Scenario analysis draws on a range of disciplines and interests. It is a more _______ approach to forecasting. A. basic B. fundamental C. in-depth D. superficial
C
Scenario planning is a useful technique for firms competing in industries characterized by __________ and ____________. A. predictability; stability B. low profit margins; stability C. unpredictability; change D. high profit margins; stability
C
Sometimes firms become preoccupied with _________ or a key feature of the product or service they are offering and ignore other factors needed for competitive success. A. multiple strengths B. multiple opportunities C. a single strength D. a single opportunity
C
Stockholders as a stakeholder group are interested primarily by A. payment of interest and repayment of principal. B. value and warranties. C. dividends and capital appreciation. D. taxes and compliance with regulations.
C
Strategic groups are clusters of firms that share __________ strategies. A. differing B. the same C. similar D. new
C
Strategy formulation and implementation is a challenging ongoing process. To be effective, it should not involve A. the CEO and the board of directors. B. the board of directors, CEO, and CFO. C. rivals. D. line and staff managers.
C
Successful organizations are effective in motivating people. Employees work best when A. they are asked to do their best. B. work requirements are vague and unclear. C. they are striving toward specific goals. D. they are guided by an abstract mission statement.
C
The Apple iPod was enormously successful due in large part to the company strategy of using A. substitute products. B. technical savvy. C. complementors. D. sophisticated software.
C
The Fairmont Royal York in Toronto invested $25,000 in an energy conservation program to replace leaky steam traps and fix leaks, which resulted in an annual savings of over $200,000. This is an example of a sustainability effort to A. increase innovation. B. decrease revenue. C. lower costs. D. increase customers.
C
The ROI on sustainability efforts can be difficult to quantify because A. an excess of necessary data for accurate calculation is readily available. B. benefits from such projects are tangible. C. the payback period is on a different time frame. D. the payback period is on the same time frame.
C
The balanced scorecard provides top managers with a __________ view of the business. A. detailed and complex B. simple and routine C. fast but comprehensive D. long-term financial
C
The balanced scorecard, developed by Kaplan and Norton, helps to integrate A. financial analysis and the reputation of a firm. B. intangible resources and operational measures. C. financial analysis and stakeholder perspectives. D. short-term perspectives and strategic positioning.
C
The case for sustainability projects needs to be made on the basis of a more holistic and comprehensive understanding of all the _____________ benefits. A. measurable and unmeasurable B. financial and physical C. tangible and intangible D. measurable and physical
C
The financial perspective of the balanced scorecard answers which of the following questions? A. How do customers see us? B. What must we excel at? C. How do we look to shareholders? D. Can we continue to improve and create value?
C
The hierarchy of organizational goals is in this order (least specific to most specific): A. vision statements, strategic objectives, mission statements B. mission statements, strategic objectives, vision statements C. vision statements, mission statements, strategic objectives D. mission statements, vision statements, strategic objectives
C
The internal measures should reflect business processes that have ______ impact on customer satisfaction. These include factors that affect cycle time, quality, employee skills, and productivity. A. the least B. variable C. the most D. potential
C
The three key types of resources that are central to the resource-based view of the firm are A. tangible resources, intangible resources, and organizational structure. B. culture, tangible resources, intangible resources. C. tangible resources, intangible resources, and organizational capabilities. D. tangible resources, intangible resources, and top management.
C
The three participants in corporate governance are the shareholders, A. board of directors, and employees. B. labor unions, and employees. C. board of directors, and management. D. banks and lending institutions, and management
C
There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that A. all parts of the organization gain at no loss. B. in order for someone to gain others must experience no gain or benefit. C. one can only gain at the expense of someone else. D. everyone in the organization shares gains and losses equally.
C
Tim Brown, CEO of IDEO, believes that the ________ of a person should not dictate the level of influence their ideas should be accorded. A. age B. seniority C. position D. education
C
___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling. A. Services B. Inbound logistics C. Outbound logistics D. Operations
C
Elements of the five forces can be quantified. This is important for analyzing industry structure. Which of the following is not an example of an element that can be quantified? A. the percentage of the buyer total cost accounted for by the industry product B. the percentage of industry sales required to fill a plant or operate a logistical network to efficient scale C. the buyer switching cost D. the governmental regulatory policy
D
Environmental analysis requires continual questioning of all of these assumptions except A. a priori ideas about the structure of the relevant industry. B. biases about how to make money in the industry. C. presuppositions about who is and is not a competitor. D. continual updating of environmental knowledge.
D
Environmental forecasting does not involve plausible projections about the ________ of environmental change. A. direction B. scope C. speed D. lack of intensity
D
Executives must be careful to avoid spending so much time and effort tracking the actions of ___________ that they ignore ____________. A. competitors; customers B. customers; competitors C. existing customers; existing competitors D. traditional competitors; new competitors
D
Financial ratio analysis measures the performance of the firm based on all but which of the following? A. balance sheet B. market valuation C. income statement D. industry comparison
D
Four factors help explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate. Which is not one of these factors? A. employee bargaining power B. employee replacement cost C. employee exit costs D. competitor bargaining power
D
Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports A. only individual primary activities. B. mostly support activities but does have some impact on primary activities. C. only individual support activities. D. both individual primary and support activities and the entire value chain.
D
In choosing to focus on stakeholders, which of the following will not lead to success for a manager? A. shareholders and employees B. employees and suppliers C. customers and the community at large D. customers only
D
In large organizations, the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals. Proper _______ can help to resolve conflicts when they arise. A. mission statements B. vision statements C. organization structure D. objectives
D
In making the decision to enter the pharmaceutical industry, a company would not need to consider which of the following? A. historical comparisons B. comparisons with industry norms C. comparisons with key competitors D. comparisons with non-competitors
D
In strategic management, both the short-term and long-term perspectives need to be considered because A. shareholder value is only measured by short-term returns. B. shareholders only care about long-term returns. C. long-term vision precludes the analysis of present operating needs. D. the creative tension between the two forces managers to develop more successful strategy.
D
In using crowdsourcing as a means to integrate the customer into the value chain, there are some perils to consider. Which of the following is not related to crowdsourcing perils? A. Giving customers the opportunity to tarnish the company brand. B. Asking for consumer input when demand is highly uncertain. C. Repeatedly getting feedback from the same customer. D. Asking for consumer input when demand is certain.
D
Incumbent firms may enjoy increased bargaining power because the Internet A. focuses marketing efforts on end users. B. has reduced the number of wholesalers and distributors. C. increases channel conflict. D. diminishes the power of many distribution channel intermediaries.
D
Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because A. companies that have implemented these techniques have lost money. B. there is no proof that these techniques work. C. they cost too much money and effort to implement. D. every company is trying to implement them.
D
New value creation is a major engine for economic growth and is the main focus of _______________ strategy. A. portfolio B. corporate-level C. business-level D. entrepreneurial
D
Perceptual acuity requires all of the following except A. an ability to sense what is coming. B. the ability to detect early warning signals of environmental changes. C. a compulsive fixation on external environmental monitoring. D. a refusal to consult with others.
D
Product differentiation by incumbents act as an entry barrier because A. new entrants cannot differentiate their products. B. incumbents will take legal action if new entrants do not differentiate their products. C. it helps a firm to derive greater economies of scale. D. new entrants will have to spend heavily to overcome existing customer loyalties
D
Raymond Ozzie, the software designer who was critical in the development of Lotus Notes, was able to dictate the terms under which IBM acquired Lotus. This illustrates that he had ______ bargaining power based on the ________ cost required by the firm to replace him. A. low; low B. low; high C. high; low D. high; high
D
Regarding the value-chain concept, the most important interrelationship is between the organization and its A. board of directors. B. employees. C. management. D. customers.
D
Richard Branson, founder of the Virgin Group, empowers his companies through a(n) _______ structure in which anyone can bring forth new ideas. A. formal B. hierarchal C. multi-level D. informal
D
Strategic management involves the recognition of trade-offs between effectiveness and A. cost. B. value. C. return on investment. D. efficiency
D
Strategy analysis is the starting point of the strategic management process and consists of the A. analysis only of the vision, mission, and objectives of the firm. B. analysis of the relevant internal and external environmental factors only. C. analysis of relevant competitors only. D. matching of vision, mission, and objectives with the relevant internal and external environmental factors.
D
Supplier power has increased because of the Internet for all of the following reasons except A. the growth of new Web-based businesses has created more outlets for suppliers to sell to. B. software that links buyers to a supplier's website has created rapid, low-cost order capabilities. C. the process of disintermediation makes it possible for some suppliers to reach end users directly. D. some suppliers have created Web-based purchasing systems that encourage switching.
D
Taking advantage of the increasing penetration of personal computers in American homes, the Mayo Clinic transformed itself as a provider of health-related knowledge and expertise. It took advantage of the ______ trends of the _______ in the prices of PCs and the ____________ presence of PCs in virtually every home in the United States. A. soft; increase; increasing B. soft; decrease; decreasing C. hard; decrease; decreasing D. hard; decrease; increasing
D
The Sustainable Apparel Coalition accounts for more than one-third of the global A. apparel and washing product industry. B. consumer product industry. C. refinery industry. D. apparel and footwear industry.
D
The balanced scorecard enables managers to consider their business from all of the following perspectives except A. customer perspective. B. internal perspective. C. innovation and learning perspective. D. ethical perspective.
D
The bargaining power of suppliers is enhanced under the following market condition: A. no threat of forward integration. B. low differentiation of the supplier products. C. greater availability of substitute products. D. dominance by a few suppliers.
D
The best measure of company ability to meet imminent financial obligations is known as the A. debt ratio. B. profit margin. C. total asset turnover. D. current ratio.
D
The four key attributes of strategic management include all of the following except A. including multiple stakeholder interests in decision making. B. incorporating both short-term and long-term perspectives. C. recognizing the trade-offs between effectiveness and efficiency. D. emphasis on the attainment of short-term objectives.
D
The innovation and learning perspective of the balanced scorecard answers which of the following questions? A. How do customers see us? B. What must we excel at? C. How do we look to shareholders? D. Can we continue to improve and create value?
D
The strategic groups concept is valuable for charting the ______ directions of firm strategies. A. historical B. past C. present D. future
D
The text addresses two perspectives of leadership as well as their implications. These two perspectives are A. romantic and unromantic. B. romantic and internal control. C. external control and unromantic. D. romantic and external control.
D
The value net is a game-theoretic approach that A. extends the value chain analysis. B. uses network analysis to understand the relationships among different companies. C. helps us to understand the evolution of the five forces over time. D. is a way to analyze how the interactions of all the players in a game affect the firm.
D
Toyota, the giant automaker, paid a heavy price for its ___________ emphasis on cost control. The resulting problems with quality and the negative publicity led to severe financial losses and an erosion of its reputation in many markets. A. minimal B. superficial C. low-budget D. excessive
D
Traditional financial models are built around relatively easy-to-measure, monetized results; whereas, the benefits of sustainability projects involve A. clear tangibles. B. clear intangibles. C. fuzzy tangibles. D. fuzzy intangibles.
D
Two types of strategic control that firms must exercise for good strategy implementation are A. informational and confrontational. B. confrontational and behavioral. C. behavioral and financial. D. informational and behavioral.
D
Using the Cuusoo System, Lego develops ideas that are generated by the many children and adults who create a model, take photos, write project descriptions, and submit their idea on the Lego website. This is an example of using __________ to develop new products. A. sociocultural data B. demographic data C. technological data D. crowdsourcing
D
Vision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision statements A. are very specific. B. provide specific objectives. C. set organizational structure. D. evoke powerful and compelling mental image
D
Wall Street executives have received excessive bonus pay in the past. This concerns which of the following stakeholder groups most directly? A. government B. suppliers C. creditors D. stockholders
D
Which is considered a force in the five-forces model? A. increased deregulation in an industry B. the threat of government intervention C. recent technological innovation D. rivalry among competing firms
D
Which of the following examples demonstrates how successful organizations manage their primary activities? A. Motorola has revised its compensation system to reward employees who learn a variety of skills. B . Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times. C. National Steel improved its efficiency by reducing the number of job classifications. D. Hewlett Packard has cut lead time from five days to one by employing JIT inventory management
D
Which of the following is a profitability ratio? A. current ratio B. total debt ratio C. total asset turnover D. return on equity
D
Which of the following is not a correct usage of the SWOT framework? A. build on its strengths B. remedy the weaknesses or work around them C. take advantage of the opportunities presented by the environment D. protect the firm from environmental weaknesses
D
Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate? A. Employees have high bargaining power. B. The cost of employee replacement is high. C. The cost of exit is high for an employee. D. Managers have low bargaining power.
D
Which of the following is not an advantage of Just-In-Time inventory systems? A. reduced raw material storage costs B. minimized idle production facilities and workers C. reduced work-in-process inventories D. reduced dependence on suppliers
D
Which of the following is not an example of corporate competitive analysis? A. banks tracking home loans B. airlines changing hundreds of fares daily in response to competitor tactics C. car manufacturers offering sales incentives based on rival offers D. consumers comparing product offers online
D
Which of the following is not an input to develop forecasts? A. environmental scanning B. competitor intelligence C. environmental monitoring D. stakeholder management
D
Which of the following lists consists of support activities? A. human resource management, technology development, customer service, and procurement B. human resource management, customer service, marketing and sales, and operations C. customer service, information systems, technology development, and procurement D. human resource management, technology development, procurement, and general administration
D
Which of the following websites is not an example of one used routinely for corporate competitive intelligence gathering? A. Slideshare B. Quora C. Duolingo D. YouTube
D
XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system. A. Last In, First Out (LIFO) B. Highly mechanized C. First In, First Out (FIFO) D. Just-In-Time (JIT)
D
Stockholders in a company are the only individuals with an interest in the financial performance of the company.
F
A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the A. interrelationships among functional areas and firm strategies organizational culture and leadership. B. organizational culture and leadership. C. need to maintain the reputation of the company. D. synergy of the business units.
A
According to Henry Mintzberg, the final realized strategy of a firm is A. a combination of deliberate and emergent strategies. B. a combination of deliberate and differentiation strategies. C. not deliberate. D. a result of unrealized intended strategy
A
Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of the __________ of an organization. A. values, aspirations, and goals B. expected returns and limitations C. outstanding debt D. credibility
A
Corporate-level strategy looks at how to manage the ______ of its businesses to create synergies. A. portfolio B. stock prices C. competitors D. market pricing
A
Supplier stakeholders are concerned with A. assurance of a continued relationship with the firm. B. employee benefits. C. safe working conditions. D. capital appreciation.
A
The Clorox Green Works line of plant-based cleaning materials captured 42 percent of the natural cleaning products market in its first year. This is an example of the benefit of A. sustainability efforts. B. cost reduction efforts. C. marketing programs. D. process management.
A
The bargaining power of suppliers increases as A. threat of forward integration by suppliers increases. B. importance of buyers to supplier group increases. C. switching costs for buyers decrease. D. more suppliers enter the market.
A
A CEO made a lot of mistakes in assessing the market and the competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the __________ perspective of leadership. A. external control B. romantic C. internal mechanism D. operational
B
According to the text, the strategic management process entails three ongoing processes. They are A. analyses, actions, and synthesis. B. analyses, decisions, and actions. C. analyses, evaluation, and critique. D. analyses, synthesis, and decisions
B
Advertising is a __________ activity. Supply of replacement parts is a __________ activity. A. support; primary B. primary; primary C. primary; support D. support; secondary
B
All of the following are examples of socially complex organizational phenomena except A. a firm's culture. B. complex physical technology. C. interpersonal relations among a firm's managers. D. leadership and trust.
B
An automobile manufacturer acquires a rental car company. This is an example of A. backward integration. B. forward integration. C. economies of scale. D. product differentiation.
B
Banks and airlines are examples of two industries that track competitor offers continually. This is called the process of gathering A. consumer responses. B. competitive intelligence. C. past decisions. D. mainline information.
B
Heightened concern with fitness might be a threat to some companies and an opportunity to others. In the SWOT framework, these are A. internal environmental factors. B. external environmental factors. C. both internal and external environmental factors. D. not relevant external environmental factors.
B
How do infomediaries and consumer information websites increase the intensity of competitive rivalry? A. by shifting customers away from issues of price B. by consolidating the marketing message that consumers use to make a purchase decision C. by making competitors in cyberspace seem less equally balanced D. by highlighting unique selling advantages of a firm
B
If managers do not recognize from the beginning that the balanced scorecard is not a _________ and fail to commit to it long term, the organization will be disappointed. A. panacea B. quick fix C. marketing ploy D. cheap solution
B
In a retail service industry, which of the following is not a primary value-chain activity? A. purchasing goods B. human resource management C. partnering with vendors D. operating stores
B
In assessing its primary activities, an airline would examine A. employee training programs. B. baggage handling. C. criteria for lease versus purchase decisions. D. the effectiveness of its lobbying activities.
B
In contrast to the vision of an organization, its mission should A. be shorter in length. B. encompass both the purpose of the company as well as the basis of competition. C. encompass all the major rules and regulations of the corporate work force. D. be less detailed.
B
In the resource-based view of the firm, examples of tangible resources include A. financial resources, human resources, and firm competencies. B. financial resources, physical resources, and technological resources. C. financial resources, physical resources, and the capacity to combine intangible resources. D. outstanding customer service, innovativeness of products, and reputation.
B
Members of boards of directors are A. appointed by the Securities and Exchange Commission. B. elected by the shareholders as their representatives. C. elected by the public. D. only allowed to serve one term of four years.
B
The threat of new entrants is high when there are A. high capital requirements. B. low economies of scale. C. high switching costs. D. high differentiation among competitors products and services.
B
Which of the following firms would likely pose the least competitive threat? A. a firm in the same industry and in the same strategic group B. a competitor to your product where a high switching cost exists C. a firm that produces substitute goods to your product line D. a firm in the same industry and in the nearest strategic group looking to join your group
B
Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis? A. Organizational strengths may not lead to competitive advantage. B. The SWOT focus on the external environment is too broad and integrative. C. SWOT gives a one-shot view of a moving target. D. SWOT overemphasizes a single dimension of strategy.
B
Entering foreign markets requires firms to ascertain foremost how they will attain A. market share. B. low costs. C. competitive advantage. D. low returns on investment.
C
Examples of how to improve perceptual acuity include: A . A CEO meets with other CEOs of non-competing companies to examine the world from multiple perspectives and then shares the results with his own management team. B. A CEO meets with the company management team regularly to analyze current world events and their potential impact on the company. C . A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies. D . Outsiders are brought in to the board meeting to critique the company strategy, which considers the new information in its potential revamping of the strategy.
C
German truck and trailer manufacturer, Schmitz Cargobull, mainly serves customers that are operators of truck or trailer fleets. What sets the company apart is its expertise in telematics (the integrated application of telecommunications data) to monitor the current state of any Schmitz Cargobullproduced trailer. This is an example of using ________ to enhance customer value and increase _______ position. A. sales; competitive B. operations; marketing C. information technology; competitive D. human resources; marketing
C
Historical comparisons provide information to managers about changes in the competitive position of a firm. Historical comparisons often are misleading A. if the overall strategy of the firm is the same. B. if the firm shows constant growth. C. in periods of recession or economic boom. D. if the firm's stock is publicly traded.
C
In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of A. overestimation of uncertainty. B. excellent forecasting. C. underestimation of uncertainty. D. good prediction skills.
C
The organizational versus the individual rationality perspective suggests that objectives that are A. good for a functional area are always good for the overall organization. B. good for the overall organization are always best for a functional area. C. best for a functional area may not be best for the overall organization. D. best for one functional area will never be best for all functional areas.
C
The resource-based view (RBV) of the firm combines the following two perspectives: A. the primary and support activities of the firm. B. the interrelationships among the primary activities of the firm and corporate management. C. the internal analysis of the firm and the external analysis of the industry and competitive environment. D. the industry and the competitive environment
C
The text argues that a strategic perspective in an organization should be emphasized A. at the top of the organization. B. at the middle of the organization. C. throughout the organization. D. from the bottom up.
C
Two of the key inputs to developing forecasts discussed in the text are A. environmental scanning and stakeholder identification. B. assessing internal strengths and environmental scanning. C. environmental scanning and competitive intelligence. D. environmental scanning and a SWOT analysis
C
Which of the following groups generally is charged with creating value through the process of organizing, coordinating, and leveraging employees as well as other forms of capital such as plant, equipment, and financial capital? A. unions B. boards of directors C. managers D. stakeholders
C
Which of the following is a support activity? A. inbound logistics B. customer service C. technology development D. operations
C
Which of the following would be an entry barrier? A. easy access to raw materials B. low switching costs C. large economies of scale D. low capital requirements
C
Which of the following would be most difficult to assess? A. the liquidity position of a firm B. market share growth C. the legitimacy and reputation of a firm D. the efficiency with which a firm utilizes its asset
C
With the total performance indicators in place at Sears, it can evaluate if a single store improves its employee attitude by 5 percent and therefore predict with confidence that if the revenue growth in the district as a whole is 5 percent, the revenue growth in this particular store would be 5.5 percent. This is an example of the _______ perspective of the balanced scorecard. A. customer B. internal business C. financial D. innovation and learning
C
__________ among organizations is played out over time. A. Negotiation B. Sustainability C. Competition D. Learnin
C
__________ are the competencies or skills that a firm employs to transform inputs into outputs. A. Tangible resources B. Reputational resources C. Organizational capabilities D. Intangible resources
C
__________ may be considered the advance work that must be done in order to effectively formulate and implement strategies. A. Goal setting B. Corporate entrepreneurship C. Strategy analysis D. Organizational design
C
A key __________ of SWOT is that it is primarily a static assessment. A. strength B. threat C. opportunity D. weakness
D
In the SWOT framework, ______________ are internal factors that are specific to the company. A. strengths and opportunities B. strengths and threats C. threats and weaknesses D. strengths and weaknesses
D
In the SWOT framework, ______________ are the same for all firms in the same competitive environment. A. strengths and weaknesses B. strengths and opportunities C. weaknesses and threats D. opportunities and threats
D
Inbound logistics include A. machining and packaging. B. repair and parts supply. C. promotion and packaging. D. warehousing and inventory control
D
As a stakeholder group, creditors are interested in taxes and compliance with regulations.
F
As a stakeholder group, customers are interested in dividends and capital appreciation.
F
Former Chrysler vice chairman Robert Lutz observed that companies exist to serve the shareholder and create shareholder value. He insisted that the only person who owns the company is the person who paid good money for it. This is an example of a symbiotic approach to stakeholder management.
F
Auditors, banks, and analysts are external control mechanisms to ensure effective corporate governance.
T
Partnering with governments, communities, suppliers, customers, and rivals is a way to manage conflicting stakeholder interests.
T
A SWOT analysis alone __________ helps a firm develop competitive advantages that it can sustain over time. A. usually B. often C. rarely D. regularly
C
A crash R&D program by one firm cannot replicate a successful technology developed by another firm, when research findings cumulate. This is an example of A. social complexity. B. physical uniqueness. C. path dependency. D. causal ambiguity.
C
A danger of forecasting discussed in the text is that A. in most cases, the expense of collecting the necessary data exceeds the benefit. B. the retrospective nature of forecasting provides little information about the future. C. managers may view uncertainty as black and white while ignoring important gray areas. D. it can create legal problems for the firm if regulators discover the company is making forecasts.
C
According to the Corporate Citizenship poll conducted by Cone Communications, most Americans say they would be likely to switch brands to one associated with a good cause, if there are similarities between A. price and availability. B. availability and quality. C. price and quality. D. price and durability.
C
According to the text, the triple bottom line approach to corporate accounting includes which three components? A. financial, environmental, and customer B. financial, organizational, and customer C. financial, environmental, and social D. financial, organizational, and psychological
C
All of the following are ambidextrous behaviors except A. taking initiative and being alert to opportunities beyond the job description. B. being cooperative and seeking opportunities to combine personal efforts with that of others. C . intensely focusing on the responsibilities of one individual and maximizing the output of the department in the organization in which that individual works. D. being brokers, always looking to build internal linkages.
C
All of the following are important elements of the political and legal segment of the general environment except A. the deregulation of utilities. B. the Americans with Disabilities Act (ADA). C. the increased use of Internet technology. D. increases in the federally mandated minimum wage
C
An important implication of the balanced scorecard approach is that A. managers need to recognize that satisfaction of stockholder demands is their primary job. B. the emphasis on customer satisfaction and financial goals are only a means to that end. C. managers should not look at their job as primarily balancing stakeholder demands. D. gains in financial performance must come at a cost of employee satisfaction.
C
A key stakeholder group that is particularly susceptible to corporate social responsibility (CSR) initiatives is A. suppliers. B. rivals. C. government agencies. D. consumers.
D
According to the external control view of leadership, which of the following factors would not be considered an external factor that might positively or negatively affect a firm's success? A. economic downturns B. governmental legislation C. outbreak of war D. company employee morale
D
Ambidextrous behaviors in individuals illustrate how a dual capacity for _______ can be woven into the fabric of an organization at the individual level. A. alignment and adaptability B. alignment and transparency C. alignment and internal linkages D. alignment and efficiency
D
Because the Internet lowers barriers to entry in most industries, it A. decreases the threat of new entrants. B. increases supplier power. C. makes it easier to build customer loyalty. D. increases the threat of new entrants.
D
Classifying an industry into strategic groups involves judgment. If it is useful as an analytical tool, we must exercise caution in deciding what dimensions to use to map these firms. Dimensions include A. breadth of product and geographic scope. B. price and quality. C. degree of vertical integration. D. management team.
D
Company __________, no matter how unique or impressive, may not enable it to achieve a competitive advantage in the marketplace. A. strengths and opportunities B. strengths and threats C. opportunities D. strengths and capabilities
D
Crowdsourcing is one form of technology that affects multiple segments of the general environment. Which of the following is not an example of crowdsourcing? A. The Linus open-source operating system B. Yelp online customer comments C. Wikipedia D. The New York Times online
D
Customer service includes A. product promotion. B. procurement of critical supplies. C. product distribution. D. parts supply.
D
Doctors and other health professionals say it is becoming harder to stay on the right side of the rules as billing requirements grow more convoluted. This is an example of which segment of the general environment? A. economic B. sociocultural C. demographic D. political and legal
D
Procter and Gamble developed a laundry detergent compaction technique that appeals to consumers, retailers, shipping and wholesalers, and environmentalists. This is an example of stakeholder symbiosis.
T
Stakeholders make various claims on a company. Their interests must be taken into account in the strategic management process.
T
Stockholders, employees, and the community-at-large are among the stakeholders of a firm.
T
Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders within and outside an organization.
T
The Higgs Index enables companies to compare environmental performance outcomes in order to improve their environmental impact and is an example of how rivals work together to resolve complex problems.
T